TVS Motor Company is India’s third-largest two-wheeler manufacturer, headquartered in Chennai. With annual sales of three million units and a production capacity of over four million vehicles, TVS exports to over 60 countries. The company has shown strong financial growth, with a revenue of ₹44,089 crore and a net income of ₹3,535 crore in FY25. TVS Motor Company offers authorized dealership opportunities, not small-scale franchises. Investors can apply to become either:
- An Authorized Main Dealer (AMD) – for cities above 1 lakh population
- An Authorized Dealer (AD) – for smaller towns with sub‑dealer status
These are comprehensive 3S (sales, service, spare parts) dealerships requiring significant setup.
Dealership Formats & Space Requirements
| 🚩 Dealership Role | Space Required |
| AMD (Metro Tier‑1) | Showroom: 1,800–2,500 sq ft; Workshop: 2,500–3,000 sq ft; Spare parts: 400–500 sq ft |
| AD (Tier‑2/3) | Showroom: ~1,000 sq ft; Workshop: ~800 sq ft; Spare parts: ~300 sq ft |
Frontage should be minimum 45 ft (AMD) or 30–35 ft (AD). TVS prefers own land/property but leased options may be considered.
Franchise Cost Breakdown
📍 Authorized Main Dealer (AMD)
- Franchise (brand deposit) fee: ₹10–20 lakh
- Infrastructure: ₹30–40 lakh
- Initial inventory of vehicles: ₹80 lakh – ₹1 crore
- Spare parts investment: ₹5–10 lakh
- Working capital: ₹40–50 lakh
- Marketing / launch budget: ₹5–10 lakh
Estimated total: ₹2–5 crore
📍 Authorized Dealer (AD)
- Brand deposit: ₹5–10 lakh
- Interiors/setup: ₹5–10 lakh
- Initial stock: ₹50–60 lakh
- Spares: ₹2–5 lakh
- Working capital: ₹15–25 lakh
- Marketing: ~₹2 lakh
Estimated total: ₹90 lakh – ₹1 crore
💡 Motorcycle FranchiseGuru estimates:
- Franchise fee ₹5–10 lakh
- Infrastructure ₹50–80 lakh
- Total investment ₹55–85 lakh, with 90% revenue share to franchisee
💡 ROI timeframe: 24–30 months
Eligibility & Application Process
To qualify:
- Net worth ₹5 crore+
- Liquidity to support investment size
- Preferably experienced in retail or automotive line
- Must commit actively and maintain brand standard
Application steps:
- Submit dealership inquiry through TVS Motor website
- Financial and background screening
- Site inspection & location approval
- Sign 3‑year dealership agreement (renewable)
- Construct facility per TVS guidelines; train staff, stock inventory
TVS offers support in inventory supply, training, CRM systems, operations, and partial marketing.
Revenue Streams & Profit Metrics
Business Channels
- New TVS vehicle sales
- Service centre (maintenance, repairs)
- Spare parts & accessories
- Insurance, finance commission
Profit Margins & ROI
- Product margins for new vehicles: ~3–5% per unit
- After-sales (service + spare parts): ~15–30% margin
- ROIs typically expected within 2–3 years with consistent operations
✅ Final Verdict: Is a TVS Dealership a Good Investment?
Yes—for structured investors with capital and operational discipline.
Pros:
- Recognized brand with wide product portfolio and steady demand
- Multiple income streams: sales, service, parts
- Support and training from TVS Motor
Risks:
- High initial capital commitment (₹1–5 crore)
- Reliant on location, inventory, and efficient operations
- Service-quality and ethical compliance issues in some dealerships
- Profitability requires managing overheads tightly
For entrepreneurs with the financial bandwidth and willingness to engage operationally, a TVS dealership can be a viable, returns-driven investment—especially when built with careful location planning, cost control, and customer‑centric service.
